TD Cowen analyst Kevin Kopelman has maintained their bullish stance on NCLH stock, giving a Buy rating on July 30.
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Kevin Kopelman’s rating is based on several positive factors influencing Norwegian Cruise Line’s financial outlook. The company has demonstrated strong yield momentum, particularly with a notable acceleration expected in the fourth quarter. This is attributed to a decrease in European itinerary mix and an increase in Caribbean offerings, which are projected to constitute 40% of capacity by 2026. Additionally, new ship deliveries and enhancements at Great Stirrup Cay are expected to contribute to future growth.
Furthermore, Norwegian Cruise Line’s recent charter deals are anticipated to boost yield growth, despite some impact on available passenger cruise days. The company’s cost-cutting measures are also expected to enhance yield spreads, providing a solid financial foundation. Overall, these factors, combined with a discounted cash flow-backed price target increase to $33, support the Buy rating for the stock.